For setting a new private bank, Edelweiss Financial Services is to apply to Reserve Bank of India. It will transfer its existing merchant banking business to subsidiary as a step to comply with norms prescribed by RBI for new banking license, said the firm on June 24. The firm will make an application to the RBI for a Banking License, in accordance with the provisions of the Guidelines for Licensing of New Banks in the Private Sector dated February 22, 2013, the company informed the Bombay Stock Exchange (BSE).
JM Financial in collaboration with Vikram Pandit (ex-Citi Bank chief), Infrastructure finance entity IDFC, Religare Enterprises and Tourism Finance Corporation of India (TFCI) are among other financial sector players who have expressed intention to get into banking. The last date for filing application for banking license with RBI is July 01, 2013.
RBI while issuing clarification on new bank licence guidelines said, the entities getting licences to open new banks will be given 18 months to open branches against 12 months prescribed earlier.
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